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5 Money Saving Myths Not to Follow All the Time

register-810546_640Everyone likes to save money. That isn’t a secret, and I’m sure you count yourself among those who loves to find various ways to save money as you go through life. Since so many people are focused on saving money, there have been a variety of money saving ideas that have popped up over the years.

Some of them are good advice, while others have been misinterpreted. Below you will find five of these money saving myths, along with some commentary as to whether or not they are really a good idea.

Never Use Credit Cards

This is simply wrong. Using credit cards can be a great way to build your credit history, as they give you a chance to demonstrate that you are able to use credit responsibly. If this tip were more accurate, it would say that you should never abuse credit cards. You certainly don’t want to use credit to buy things you can’t afford, but using it to buy things you would purchase anyway is a great way to build a solid financial future.

Always Shop Sales

You can find some great deals when shopping sales to be sure, but you can also wind up buying a bunch of junk that you don’t really need. Think about it – have you ever bought something just ‘because it was on sale’? Probably. It is easy to get sucked into the idea of buying something because of the great deal that you are getting, while forgetting that you might not even need to make the purchase at all.

Live By Your Budget

There are some situations that can benefit from the use of a budget, but often the only thing a budget will do is lead you to spending money that could have been saved. If you allocate money in your budget for certain items, you will probably buy them even if you don’t need them. As a better idea, just spend your money on an as-needed basis, without taking the time to create a formal budget.

Buying a Home is an Outdated Concept

This is another thought that is simply incorrect. While the benefits of buying a home rather than renting your housing might not be as profound as they once were, it is still preferable to own rather than rent most of the time. Even if your home only appreciates a small amount in the time that you own it, you should still come out significantly better off than if you had rented the whole time. In addition to the potential financial benefits, you also get to enjoy the freedom and security that comes with being your own landlord.

Save Money on Car Maintenance

Many people think that things like 60K mile service visits to the dealership are a waste of time and money. Those are people who don’t know very much about cars. Your car needs regular maintenance and service if it is going to keep running properly for years to come. While you might be able to save a few hundred bucks by skipping out on a service visit for the time being, you are almost certain to spend more than that later when you have a breakdown.

 

Can you think of any other money saving myths? Have you ever fallen for one of these money saving myths?

 

Photo courtesy of: Skitterphoto

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

One comment

  1. Nice myths and I agree with each of these. I practice “Always shop sales,” but I try as much as possible to challenge myself with no spending days, even in sale season.

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